Overtime wages not taxable under Anderson bill
In an effort to lessen the tax burden on Illinois workers, State Senator Neil Anderson filed legislation that would exempt overtime wages from state income tax.
Senate Bill 3695 would create a deduction on any overtime wages earned in Illinois. Wages earned in excess to a taxpayer’s regular monthly or weekly salary would be exempt from the state income tax.
“Illinois residents are already taxed enough,” said Sen. Anderson. “This bill simply gives those who work above and beyond a break when they file their yearly taxes.”
The state income tax on overtime wages would still be withheld from an individual’s paycheck; however, when that person goes to file their taxes for that year, they will receive a deduction equal to the amount of taxes paid on overtime wages.
“This bill is the least we can do for hard-working Illinoisans, who are already being burdened by Illinois’ out-of-control taxes,” said Sen. Anderson.